Not only did the EEOC interview Jiang, but it also interviewed most if not all members of Jiang's trading staff, people with knowledge of the matter say. The EEOC is expected to make a ruling on the case -- whether to join to suit or not -- in the coming weeks.
SAC's troubles may not end with Tong's allegations, however. The US Attorney for the Eastern District of New York has interviewed Tong about trading activities at SAC Capital, one of the world's most powerful hedge funds run by superstar trader Stephen Cohen, according to people familiar with the matter.
SAC has been the target of private litigation claiming that the firm has sold stocks short (betting they will decline in price) after getting tipped off to negative analysts reports about certain companies. SAC has denied the accusations.
Meanwhile, one person with knowledge of the EEOC's activities says the commission might expand its inquiry of Tong's charges of sexual harassment after reading a quote in the New York Post, citing an SAC employee who said: "If taking female hormones actually helped you do your job, they would simply hire women here...But they don't. They don't think women are aggressive enough."
An SAC spokesman declined to comment on the EEOC's increased interest in Tong's allegations other than to say: "SAC conducted a thorough investigation and found these scurrilous accusations to be false. We will vigorously defend ourselves and are confident that these claims will be swiftly rejected in arbitration."
Tong's attorney, Gerry Filippatos, said in a statement that "all the facts stated by Andrew Tong in his verified complaint are absolutely true" and that they "are corroborated, in part, by scientific evidence that supports the occurrence of traumatic events that form the basis of his lawsuit."
Filippatos wouldn't comment about the specifics of the case. Tong's allegations, first reported by CNBC last week, are contained in a lawsuit sealed by a New York State Supreme Court judge.
In the lawsuit,Tong alleges that he was forced to take female hormones by Jiang who said they would make him less aggressive and a better trader. Tong said in the lawsuit that he was sexually assaulted by Jiang and that he was forced to wear women's clothing and couldn't have sex with his wife, who was trying to get pregnant.
The sexual harassment allegation made by Tong involves a sexual assault where Tong claims to have been tied up by Jiang, according to people with knowledge of the matter.